Can someone explain this to me please? Noobie question

themoffster

In this page http://www.moneysupermarket.com/mortgages/MortgageDetailsNew.asp?id=4284&LENDER=1&TRUCOST=0&TRUCOSTYRS=0&1MONTHPAY=0&APR=7.00&BypassSplash=0 it says there is a £150 cost on completion.
Is this cost on completion of the 2yr fixed rate, or is it on completion of me becoming mortgage free (assuming I stay on this mortgage for the duration).

If it is the latter, am I right in saying that this fee will never apply to me if I move mortgages after the fixed rate expires (i.e. with no penalties)?

It will be a mortgage for a flat in Scotland - I say this as my old man suggested that he thinks land registry fees are just in England, but he wasn't sure.

Cheers!

Ivenofinmoney

i am no expert but i would guess it would be on completion of contracts i.e. The day you move in.

ossie1_2

Could you be specific regarding what deal is and who with? would probably be able to confirm the answer for you. Generally, most lender's who quote £150 on completion would charge this amount upon completion of the mortgage application process: ie, when you have taken the mortgage out and not when you have redeemed it. However, most lenders' nowadays make a charge upon redemption of a mortgage as well so it would be wise to clarify if this is the case with the lender you are looking at. It would also be wise to see that if there is a charge, see whether it can change. ie, it may be £200 if you redeem a mortgage with them now, they may be able to increase it to whatever they want in the future.

themoffster

It's not a mortgage I was looking specifically at, but from a search of that site I wasn't sure what that the 'on completion cost' meant.
All the mortgages seem to have one.

Leon_W

Right.

I,ve just had a look at the link and can see nothing about a completion fee but I will just tell you what it is for future reference.

Lenders charge arrangement fees in various different ways which can be confusing.

1. Added to the loan. Says what it means really. If the lender charges £499 as an arrangement fee it can be added to the loan. (Don't forget you'll be paying interest on it !)

2. On Completion. If the lender charges an arrangement fee of £699 and it CANNOT be added then it is up to you to find it before hand. Failing that, most lenders will allow it to be DEDUCTED from the mortgage advance.

3. A booking fee. Usually for fixed rates and normally payable UPFRONT.

The £150 you mention sounds way too low to be an arrangement fee and sounds to me it's more like a deeds release fee or sealing fee which is only payable when you close the mortgage account completely.

ossie1_2

Give Moneysupermarket a call, they are normally pretty good at clarifying information.The above info is pretty accurate however